Broad-based taxes

Tuesday

Apr 22, 2014 at 10:51 PM

would hurt N.H. economy

would hurt N.H. economy

April 21 — To the Editor:

Any discussion of New Hampshire's tax system needs to recognize that our economy is doing remarkably well under the current system, compared to the rest of the country. In fact, New Hampshire is one of only two states in the country that is in the top 10 for both median income and (low) unemployment. The other is Hawaii, which has an attractive tropical climate but a very high cost of living.

Those who advocate for broad-based income and sales taxes frequently say that we should be more like other states. But, economically, we're doing better than almost all the other states! Why would we want to copy their destructive policies?

Consider California, which has a 7.5 percent sales tax and an income tax that can go as high as 12.3 percent. That kind of tax structure should be good for everybody, according to broad-based tax advocates. Yet California lags behind us in median income and its unemployment rate is a horrifying 8.1 percent. New Hampshire's unemployment? 4.5 percent.

Or look at Illinois, which has a 6.25 percent sales tax and a 5 percent income tax. Illinois also lags behind us in median income and has 8.4 percent unemployment.

Does this mean that New Hampshire's tax structure can't be improved? Of course not. But the "improvements" that broad-based tax advocates want will almost certainly leave us poorer and less free.

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